Which one of the following statements is not correct regarding the efficient breach theory? |
A |
Damages for mental distress and the time and effort to find a substitute performance are not compensable. |
B |
It assumes the absence of transaction costs. |
C |
The rules of contract damages often fail to compensate for all the losses of the party injured by the breach. |
D |
The business community accepts the theory as a valid justification for willful breaches. |
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In Wassenaar v. Panos, the court stated all of the following except |
A |
stipulated damages allow private parties to perform the judicial function of providing the remedy in breach of contract cases. |
B |
considerations of judicial economy and freedom of contract favor enforcement of stipulated damages clauses. |
C |
private law, not public law, ordinarily defines the remedies of the parties. |
D |
stipulated damages substantially in excess of injury may justify an inference of unfairness in bargaining |
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